The German sports betting operator Tipico owned by one of the largest private-equity firms on a global scale has joined the £1.5-billion competition for the UK-based assets of William Hill.
According to media reports, Tipico, which is currently majority-owned by CVC Capital Partners, has become one of the bidders who have expressed interest in the acquisition of the UK high-street betting shops and European assets of William Hill. As revealed by sources familiar with the situation, Tipico Group has placed a “credible” acquisition bid for William Hill that was purchased in a £2.9-billion deal by the US gambling company Caesars Entertaiment.
As reported by Casino Guardian, Caesars Entertainment is willing to dispose of the British gambling company’s operations outside the US. The American gambling giant has hired advisers from Deutsche Bank to conduct an auction for the assets in question.
Tipico Group was purchased by CVC Capital Partners in 2016. According to industry sources, now, the company is going to compete with the bids of three other operators – 888 Holdings, Apollo Global Management and Betfred – for the UK and European assets of William Hill. Another private-equity firm that has expressed interest in participating in the bidding war, Advent International, is no longer taking part in the competition process, while the British gambling giant Entain has reportedly decided not to submit an official takeover offer.
Several Companies Already Said They Were Interested in Buying William Hill’s European Business
As shared by a gambling market analyst, they expected the level of interest to boost the potential price of the deal to more than £1.5 billion.
In case the takeover bid of Tipico turns out successful, the deal would bring together CVC and William Hill after the companies spent almost twenty years apart. The popular British gambling operator was bought by CVC and Cinven in an £825-million deal in 1999 and three years later decided to float it on the London Stock Exchange (LSE).
Currently, William Hill is one of the largest and most popular gambling companies in the UK. It also has a massive European footprint with an extensive presence in a number of markets, including Spain and Italy. Furthermore, it operates more than 1,400 high-street betting outlets in its domestic market, where it has been fighting not only other large gambling companies but has also been dealing with stricter regulation of fixed-odds betting terminals (FOBTs).
Considering the fact that Tipico has once been the biggest sports betting group in Germany, the current interest of the company in the acquisition of William Hill’s European portfolio is understandable. The company, which is headquartered in Malta, also offers its services in Austria, Croatia, Colombia and the US. The potential acquisition of William Hill will be the fastest way to diversify its business.
Although no specific details about the potential bid of Tipico have been unveiled so far, experts say the takeover offer is likely to be funded by the company’s majority owner CVC Capital Partners.
- Author
Olivia Cole
